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masha68 [24]
3 years ago
9

What is moral hazard? It refers to the actions people take before they enter into a transaction so as to mislead the other party

to the transaction. It refers to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off. It refers to the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction. It refers to the private, self-interested actions that people pursue, which when taken collectively leads to a loss in economic surplus.
Business
1 answer:
algol133 years ago
5 0

Answer: Option (a) is correct.

Explanation:

Moral hazard is a type of risk that one of the party has not entered into the agreement with a good intention. Also, they may provide incorrect or misleading information about them to take an advantage from acting opposite to the laid principles.

These type of activities mostly occurred in the lending and insurance industries where defaulters were not provided the true information about their work and business.

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A real estate broker agrees to manage a property for its owner, but only on the condition that when the owner decides to sell, h
kati45 [8]

Answer:

Sherman Antitrust Act of 1890

Explanation:

In this specific scenario, the real estate broker would be in violation of the Sherman Antitrust Act of 1890. This is a federal statute that prohibits activities that restrict interstate commerce and competition in the marketplace. Therefore, by telling the owner that he must list the property with his broker, the agent is preventing the other competitors from having a fair shot at obtaining the listing, making this a violation.

3 0
3 years ago
Write a two-paragraph essay in your own words, following the criteria listed below.
ycow [4]

The roles of a Webmaster may differ from company to company. But the 3 basic roles are:

1- Build new functionality - ensuring that new features are built based on business needs that delight a user and that will make them want to come back.

2- Security - ensuring that a user's Personal Identifiable Information (PII) such as name, credit card info, addresses, social security numbers etc are protected against malicious cyber attacks.

3- Availability - ensuring that the website or service is 99.9999% available. If a website goes down for whatever reason, it could cost the company millions in lost revenue. This is usually handled by a team called DevOps.

Think of these roles as 3 parts of a circle - all 3 roles are equally important for a website or service to be successful.

Based on this you can answer the second part - which role interests you the most.


6 0
3 years ago
A stock is expected to pay $ 1.10 per share every year indefinitely and the equity cost of capital for the company is 8.4​%. Wha
Marina CMI [18]

Answer:

$13.06

Explanation:

Data provided in the question

Expected dividend pay every year  = $1.10

And the equity cost of capital is 8.4%

So, the price expected to pay per share ten years in future is

= Expected dividend pay every year ÷ the equity cost of capital

= $1.10 ÷ 8.4%

= $13.06

By dividing the expected dividend by the equity cost of capital we can get the price

5 0
3 years ago
The music market study conducted by Matthew Salganik, Peter Dodds, and Duncan Watts demonstrated that group influence shapes: a.
ExtremeBDS [4]

Answer:

b.

Explanation:

According to the music market study conducted by Matthew Salganik, Peter Dodds, and Duncan Watts demonstrated that group influence shapes our personal taste and decisions regarding music. Just like in high school, groups have the ability to influence other peoples decisions. Especially those who look to those groups as superior. Which was demonstrated by the study mentioned in the question in regards to music.

5 0
3 years ago
To pay your bills on the due date or soon after is to earn a _________ credit rating.
Andrew [12]
Poor credit rating.
4 0
3 years ago
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